NCUA's New IRR & NEV Framework



A #NCUA webinar recently added context to the new Interest Rate Risk (IRR) and Net Economic Value (NEV) framework.


In this week's With Flying Colors #podcast I interview Subject Matter Expert Todd Miller on what this means for credit unions.


In this soundbite we highlight our biggest takeaway which was made by NCUA Chairman Todd Harper:




The changes to the guidance are good, in that they eliminate the Extreme Risk Category - which carried with it an automatic Document of Resolution (DOR).


However, don't assume that this means NCUA is backing off on NEV and IRR.


Chairman Harper stated that Interest Rate Risk is an exam priority this year and will be an exam priority in 2023.


The webinar also made it clear that NCUA's has actually added examination steps - making the IRR reviews more robust and intense in some situations.


Of course, the Federal Reserve increasing rates is having good and bad impacts on credit unions - and more scrutiny of IRR is likely.


Attached you will find the examination scope and workbook that examiners will use during your next exam.



IRR Workbook_Industry Webinar
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